TIDM87ZW
RNS Number : 3054M
Flagship Finance PLC
13 September 2023
Flagship Housing Group Limited (Flagship) trading update,
audited financial statements for the year ended 31 March 2023 and
change to executive team.
Appointment of Chief Financial Officer
Flagship announces the appointment of Jonathan McManus as Chief
Financial Officer, effective from 1 October 2023. Jonathan has
served as the Group's Finance Director for seven years, and since 1
December 2022 has held the position of Interim CFO. He is a member
of the Chartered Global Management Accountants and holds extensive
financial expertise.
David McQuade, Chief Executive , said: " After a rigorous
selection process, the Board is delighted that Jonathan McManus
will be assuming the role of Chief Financial Officer. His
experience and commitment to our company's success render him a
valuable addition to our Executive team."
Flagship headline results and highlights
Flagship, the parent company of Flagship Finance Plc and a
Registered Provider of Social Housing that owns and manages 32,721
(2022: 32,192) homes in the east of England, announces its trading
highlights and summary of audited financial results for the year
ended 31 March 2023. Highlights include:
-- 750 new homes built during the year: 451 affordable rent; 181
shared ownership, 2 shared equity and 116 open market sale.
-- Financial performance remains robust with annual turnover
increasing by 7.9% to GBP250.2m (2022: GBP231.9m)
-- Invested GBP89m (2022: GBP75m) in maintaining and improving
its homes delivering a reinvestment percentage of 8.6%, helping
Flagship to stand out from its peer group of Registered Providers
with a similar number of units.
-- Annual Operating surpluses of GBP79.6m (2022: GBP83.3m)
-- Delivered an operating margin, including gains on disposal, of 31.8% (2022: 35.9%).
-- Arrears and void loss both improved year on year.
-- Credit rating of A2 (Negative) from Moody's
-- G2 / V2 rating from the Regulator of Social Housing - last IDA completed April 2023
Full year results demonstrate robust financial performance and
ongoing commitment to sustainability
It has been a tumultuous year for businesses of all sizes and
Flagship has certainly not been immune to those challenges. Our
people, business operations and operating performance were impacted
by rising energy bills, the cost-of-living crisis, inflation,
supply chain disruption and labour shortages. We have navigated
these uncertainties and risks with a determined focus and we are
proud of our underlying financial viability that enabled our Board
to make some important decisions to maintain asset investment,
reduce outstanding repairs, and deal with damp and mould amidst a
challenging economic environment.
Alongside the financial statements, we have also published our
'Use of Proceeds Report' detailing how the funds raised under our
Sustainable Finance Framework have been used.
Both documents are available on our website:
www.flagship-group.co.uk/about-us/investors-hub/
Jonathan McManus, Interim Chief Financial Officer at Flagship
said:
"Our focus has been on maintaining and improving compliant
high-quality affordable homes despite the challenging economic
trading environment. We have continued to deliver a strong set of
financial results which underpins our healthy liquidity
position.
We are pleased that we have remained compliant with the
Regulator's Governance and Financial Viability standards following
our recent In-Depth Assessment in April 2023. We now have the
opportunity to formulate a comprehensive action plan working with
the regulator, our people, our tenants and our Board of Directors
to further strengthen our governance arrangements as we strive to
return to G1 and V1 in the future.
58.9% (2022: 56.6%) of our homes meet EPC-C and we remain on
track for all homes to be at EPC-C or above by 2030. We have set
ourselves an ambitious goal to be a net zero Flagship by 2050. Our
action plan which includes building new homes to SAP 86+,
significant retrofit programmes, landfill waste reduction, an
all-electric car fleet and a new Environmental Management System
will help guide us toward that goal.
Only one six storey property in our portfolio requires internal
and external improvement works. Following extensive surveys, we now
understand the cost of the works required to be GBP3.25m and this
has been outlined in our annual report."
Development Review
Building new homes and improving our existing homes is an
integral part of achieving our business plan and delivering our
social purpose.
During the year ended 31 March 2023 we have built 750 (2022:
655) new homes across Norfolk (376 homes), Suffolk (251 homes),
Cambridgeshire (63 homes) and Essex (60 homes).
We sold 103 open market sale homes and 152 shared ownership
homes generating GBP52.8m of income. We further sold additional
tranches in 50 existing shared ownership homes generating a further
GBP5m of income.
98% (2022: 95%) of the new homes we delivered during the year
were built to EPC-B (SAP 81+) or above. We are designing new homes
on our own land to be SAP 86+ to meet future net zero emission
targets in accordance with our net zero strategy. 42% of homes on
our own land were SAP 86+ in 2023, up from just 19% in 2022. Future
proofing these properties today, and building renewable technology
into their fabric, means that we do not have to retrofit them in
the future reducing the overall cost of investment required in each
property.
Damp and Mould
We're committed to eradicating damp and mould in our homes. We
have introduced a comprehensive suite of initiatives during the
year, both shorter term interventions and longer-term proactive
measures to deliver our commitment. We welcome government
legislation and are working tirelessly to ensure our homes are safe
and healthy for our tenants. We will continue to work closely with
our tenants and partners to understand the best methods and utilise
existing and emerging technologies to prevent damp and mould.
Enquiries
All enquiries in relation to this trading update should be
directed to:
Jonathan McManus Interim Chief Financial Officer
Tel: 0845 258 6219
email: treasury@flagship-group.co.uk
Disclaimer
The information in this announcement of results has been
prepared by Flagship Housing Group Limited and is for information
purposes only. The announcement should not be construed as an offer
or solicitation to buy or sell any securities issued by Flagship
Finance Plc or any other member of the Group, or any interest in
such securities, and nothing herein should be construed as a
recommendation or advice to invest in any such securities.
This announcement contains certain forward-looking statements
reflecting, among other things, our current views on markets,
activities and prospects. By their nature, forward looking
statements involve a number of risks, uncertainties or assumptions
that could cause actual results to differ materially from those
expressed or implied by those statements. Actual and audited
outcomes may differ materially. Such statements are a correct
reflection of our views only on the publication date and no
representation or warranty is given in relation to them, including
as to their completeness or accuracy or the basis on which they
were prepared. Financial results quoted are audited. We do not
undertake to update or revise such public statements as our
expectations change in response to events. Accordingly, undue
reliance should not be placed on forward looking statements.
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END
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